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With a record number of new companies starting up in

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With a record number of new companies starting up in [#permalink] New post 26 Dec 2012, 23:37
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A
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Question Stats:

88% (02:37) correct 12% (01:29) wrong based on 69 sessions
With a record number of new companies starting up in Derderia and with previously established companies
adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year,
previously established companies will not be adding as many new jobs overall as such companies added last
year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for
new jobs created. Which of the following is an assumption on which the argument relies?
A. Each year, new companies starting up create more new jobs overall than do previously established companies.
B. This year, the new companies starting up will not provide substantially more jobs per company than did new
companies last year.
C. Companies established last year will not add a greater number of jobs overall this year than they did last year.
D. This year, the overall number of jobs created by previously established companies will be less than the overall
number of jobs lost at those companies.
E. The number of jobs created in the Derderian economy last year was substantially larger than the number of
jobs lost last year.

OA
[Reveal] Spoiler:
B

Familiar stimulus but somewhat tougher answer choices.
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Re: With a record number [#permalink] New post 27 Dec 2012, 00:02
Expert's post
Marcab wrote:
With a record number of new companies starting up in Derderia and with previously established companies
adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year,
previously established companies will not be adding as many new jobs overall as such companies added last
year. Therefore, unless a record number of companies start up this year, Derderia will not break its record for
new jobs created. Which of the following is an assumption on which the argument relies?
A. Each year, new companies starting up create more new jobs overall than do previously established companies.
B. This year, the new companies starting up will not provide substantially more jobs per company than did new
companies last year.
C. Companies established last year will not add a greater number of jobs overall this year than they did last year.
D. This year, the overall number of jobs created by previously established companies will be less than the overall
number of jobs lost at those companies.
E. The number of jobs created in the Derderian economy last year was substantially larger than the number of
jobs lost last year.

OA
[Reveal] Spoiler:
after discussions

Familiar stimulus but somewhat tougher answer choices.


This is one of the CR topics which tests quantitative reasoning!
The prompt states that older companies will not add more jobs than newer companies and the argument concludes that a record number of new startups must be formed this year to compensate for the number of jobs lost due to the older companies.
This however does not account for the number of jobs per company
for example if 100 jobs are lost this year then it could be recovered by 100 new startups with 1 job per startup or 5 new startups with 20 jobs per startup.
So for the conclusion to be valid, the new startups will ONLY reach a record number if they offer less number of jobs per startup.
Clear answer choice is B.
I would now recommend process of elimination in these type of questions as I find the best approach to be prethinking.
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Re: With a record number [#permalink] New post 27 Dec 2012, 00:52
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Indeed you are correct Souvik.
Now here is my doubt:
i) Does "....be adding as many new jobs overall ..."means that older companies will not be adding more jobs or does it means that older companies will not be adding the number of jobs equal to the number of jobs added last year. What I mean to say is that can the # of jobs added by established companies this year be more than that of last year? I am played down by "as many as".
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Re: With a record number [#permalink] New post 27 Dec 2012, 00:59
Expert's post
Sometimes Assumption question remember me where to insert the phrase that best fits among the choices, four little black square, Toefl test.

Here is the same. Only B for logic and because consolidate the rest of the stimulus.
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Re: With a record number [#permalink] New post 27 Dec 2012, 01:02
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Marcab wrote:
Indeed you are correct Souvik.
Now here is my doubt:
i) Does "....be adding as many new jobs overall ..."means that older companies will not be adding more jobs or does it means that older companies will not be adding the number of jobs equal to the number of jobs added last year. What I mean to say is that can the # of jobs added by established companies this year be more than that of last year? I am played down by "as many as".


With a record number of new companies starting up in Derderia and with previously established companies
adding many jobs, a record number of new jobs were created last year in the Derderian economy. This year,
previously established companies will not be adding as many new jobs overall as such companies added last
year.


Yeah so the prompt means two things:
  • With a record number of new companies starting up in Derderia and with previously established companies
    adding many jobs, a record number of new jobs were created last year in the Derderian economy.
    This means that last year older companies produced a COMPARABLE number of jobs as young companies did. That is if new startups made 100 jobs, the older ones made around 80-120 jobs i.e a comparable figure.
  • This year, previously established companies will not be adding as many new jobs overall as such companies added last year This means that the older companies will not produce as many jobs as they did last year. That is if they produced 120 jobs last year, this year they will produce much less than that. Probably 30-40 or something like that

With the 2 consideration the argument concludes that a VERY high number of startups must hire new jobs this year to compensate. But it assumes that the startups will not make a LOT of new jobs per company.

Does it solve your question?
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Re: With a record number [#permalink] New post 27 Dec 2012, 01:30
Expert's post
Yeah...it did. I was overestimating the meaning of "as many as". Now its clear.
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Re: With a record number [#permalink] New post 31 Dec 2012, 11:33
Confused between A and B will lean towards B because new companies will not establish substantialy more jobs is purely based on assumption..
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Re: With a record number of new companies starting up in [#permalink] New post 17 Jan 2013, 16:43
Do 'Companies established last year' from C count as 'previously established companies' from the passage?
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Re: With a record number of new companies starting up in [#permalink] New post 21 Jan 2013, 17:53
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bugzor wrote:
Do 'Companies established last year' from C count as 'previously established companies' from the passage?


Hi Bugzor,

The short answer to your question is: Yes. For this year, the companies established last year will be counted as "previously established companies" in the context of the passage.

Hope that helps :)

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Re: With a record number of new companies starting up in   [#permalink] 21 Jan 2013, 17:53
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